Succession Planning is Critical This Year

Succession planning is especially critical this year because the nation’s estate tax laws are scheduled to change in 2013.  Currently, each individual has a $5 million federal tax exemption.  Anything above the $5 million would be assessed at a tax rate of 35%.    Beginning next year, the federal tax exemption amount will change for $5 million to $1 million and the assessed tax rate would rise from 35% to 55%.  It is important to plan way ahead and consider the long term effects of the choices made on the business and the family.  

Cheryl Spratt